Retailers providing aftermarket parts, maintenance, and repair services.
Description: AutoZone, Inc. is the largest retailer and distributor of automotive replacement parts and accessories in the United States. Founded in 1979, the company operates over 7,140 stores across the U.S., Mexico, Puerto Rico, Brazil, and the U.S. Virgin Islands, offering a wide range of products for cars, SUVs, vans, and light trucks.
Website: https://www.autozone.com
| Name | Description | % of Revenue | Competitors |
|---|---|---|---|
| Automotive Hard Parts | New and remanufactured parts such as engines, brakes, and transmissions. | Approximately 60% | O'Reilly Automotive, Inc. (ORLY), Advance Auto Parts, Inc. (AAP) |
| Maintenance Items | Products like motor oil, filters, and batteries. | Approximately 25% | O'Reilly Automotive, Inc. (ORLY), Advance Auto Parts, Inc. (AAP) |
| Accessories and Non-Automotive Products | Items including car care products, tools, and non-automotive merchandise. | Approximately 15% | O'Reilly Automotive, Inc. (ORLY), Advance Auto Parts, Inc. (AAP) |
Past 5 Years:
Next 5 Years (Projected):
About Management: As of 2025, AutoZone's executive team is led by CEO and President Philip B. Daniele III, who has been with the company since 1969. The team includes experienced leaders overseeing various departments, contributing to the company's strategic growth and operational efficiency.
Unique Advantage: AutoZone's extensive store network and robust supply chain enable it to provide a wide range of products with prompt availability. Its focus on customer satisfaction and a strong commercial sales program further distinguish it from competitors.
Tariff Impact: The recent 25% tariffs on imported vehicles and auto parts are expected to increase the cost of goods sold for AutoZone, as many of its products are sourced internationally. To mitigate this, AutoZone plans to pass these additional costs onto consumers through price adjustments. While this strategy aims to preserve profit margins, it may lead to reduced consumer demand, particularly in the price-sensitive DIY segment. However, higher tariffs on new vehicles could encourage consumers to maintain and repair their existing vehicles longer, potentially increasing demand for aftermarket parts and services. Overall, the tariffs present both challenges and opportunities for AutoZone, requiring strategic pricing and inventory management to navigate the evolving market dynamics.
Competitors: Major competitors include O'Reilly Automotive, Inc. (ORLY) and Advance Auto Parts, Inc. (AAP), both holding significant market shares in the automotive parts retail industry.
Description: O'Reilly Automotive, Inc., operating as O'Reilly Auto Parts, is a leading retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, Puerto Rico, and Mexico. Founded in 1957, the company serves both professional service providers and do-it-yourself customers, offering a comprehensive range of products for domestic and imported vehicles.
Website: https://www.oreillyauto.com
| Name | Description | % of Revenue | Competitors |
|---|---|---|---|
| Automotive Hard Parts | Includes new and remanufactured parts such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, and water pumps. | Approximately 60% | AutoZone, Inc. (AZO), Advance Auto Parts, Inc. (AAP) |
| Maintenance Items | Comprises antifreeze, appearance products, engine additives, filters, fluids, lighting products, oil, and wiper blades. | Approximately 25% | AutoZone, Inc. (AZO), Advance Auto Parts, Inc. (AAP) |
| Accessories | Includes floor mats, seat covers, truck accessories, and other automotive-related accessories. | Approximately 10% | AutoZone, Inc. (AZO), Advance Auto Parts, Inc. (AAP) |
| Tools and Equipment | Offers automotive tools and professional service provider equipment. | Approximately 5% | AutoZone, Inc. (AZO), Advance Auto Parts, Inc. (AAP) |
Past 5 Years:
Next 5 Years (Projected):
About Management: As of 2025, Brad Beckham serves as the Chief Executive Officer of O'Reilly Automotive, Inc. Under his leadership, the company has continued its expansion and maintained a strong market position in the automotive aftermarket industry.
Unique Advantage: O'Reilly's competitive advantage lies in its dual-market strategy, effectively serving both professional service providers and do-it-yourself customers. This approach, combined with a vast product selection and a commitment to exceptional customer service, has enabled the company to achieve consistent growth and market share gains.
Tariff Impact: The recent 25% tariffs imposed on imported vehicles and auto parts from countries like Canada, Mexico, Japan, Germany, and South Korea are unlikely to have a significant direct impact on O'Reilly Automotive, Inc. This is because the company primarily sources its products domestically or from countries not affected by these tariffs. Additionally, O'Reilly's focus on aftermarket parts, which are often produced locally or sourced from tariff-exempt regions, further mitigates potential adverse effects. Therefore, the new tariffs are not expected to materially affect O'Reilly's operations or financial performance.
Competitors: O'Reilly's primary competitors in the Vehicle Services & Parts Retailers sector include AutoZone, Inc. (AZO) and Advance Auto Parts, Inc. (AAP). Both companies operate extensive networks of stores across the United States and offer similar product lines, competing directly with O'Reilly in both the professional service provider and do-it-yourself customer segments.
Description: Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider serving both professional installers and do-it-yourself customers. Headquartered in Raleigh, North Carolina, the company operates over 4,700 stores across the United States, Canada, Puerto Rico, and the U.S. Virgin Islands. It also supports more than 1,100 independently owned Carquest branded stores in these regions, as well as in Mexico and various Caribbean islands. The company offers a wide range of automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported vehicles.
Website: https://www.advanceautoparts.com
| Name | Description | % of Revenue | Competitors |
|---|---|---|---|
| Replacement Parts | Includes batteries, brakes, engine parts, and other essential components for vehicle maintenance and repair. | Approximately 60% | AutoZone, Inc., O'Reilly Automotive, Inc. |
| Accessories | Offers interior and exterior accessories such as floor mats, seat covers, and lighting products. | Approximately 20% | AutoZone, Inc., O'Reilly Automotive, Inc. |
| Maintenance Items | Provides products like motor oil, filters, and wiper blades for routine vehicle upkeep. | Approximately 15% | AutoZone, Inc., O'Reilly Automotive, Inc. |
| Services | Includes battery and wiper installation, engine light scanning, and electrical system testing. | Approximately 5% | AutoZone, Inc., O'Reilly Automotive, Inc. |
Past 5 Years:
Next 5 Years (Projected):
About Management: Shane O'Kelly serves as the President and Chief Executive Officer of Advance Auto Parts, Inc., having joined the company in September 2023. Prior to this role, he was the CEO of HD Supply, a subsidiary of The Home Depot, Inc. O'Kelly holds a bachelor's degree from the United States Military Academy at West Point and an MBA from Harvard Business School. (ir.advanceautoparts.com)
Unique Advantage: Advance Auto Parts differentiates itself through a comprehensive product selection, a vast store network, and a strong focus on customer service, catering to both professional installers and DIY customers. Its strategic partnerships and extensive distribution network enhance its ability to meet diverse customer needs efficiently.
Tariff Impact: The recent 25% tariffs on imported vehicles and auto parts are expected to have a mixed impact on Advance Auto Parts. On one hand, higher prices for new vehicles may lead consumers to maintain and repair their existing vehicles longer, potentially increasing demand for aftermarket parts and services. This trend could benefit retailers like Advance Auto Parts, as consumers invest more in vehicle upkeep. However, the tariffs may also raise the cost of imported auto parts, affecting the company's supply chain and potentially leading to higher prices for consumers. The net effect will depend on the company's ability to manage increased costs and capitalize on the potential rise in demand for maintenance and repair services. (axios.com)
Competitors: Major competitors in the vehicle services and parts retail sector include AutoZone, Inc. and O'Reilly Automotive, Inc. Both companies have extensive store networks and strong market positions, offering similar products and services to Advance Auto Parts.
Description: CarParts.com, Inc. is a leading eCommerce provider of automotive parts and accessories, offering a wide selection of new, quality auto parts for car repair, maintenance, and collision, as well as accessories, all at competitive prices. The company operates through its flagship website and mobile app, serving individual customers across the United States.
Website: https://www.carparts.com
| Name | Description | % of Revenue | Competitors |
|---|---|---|---|
| Replacement Parts | Exterior parts, mirror products, engine and chassis components, and other mechanical and electrical parts. | Approximately 70% | AutoZone, Inc. (AZO), O'Reilly Automotive, Inc. (ORLY), Advance Auto Parts, Inc. (AAP) |
| Performance Parts and Accessories | Aftermarket parts designed to enhance vehicle performance and aesthetics. | Approximately 30% | AutoZone, Inc. (AZO), O'Reilly Automotive, Inc. (ORLY), Advance Auto Parts, Inc. (AAP) |
Past 5 Years:
Next 5 Years (Projected):
About Management: David Meniane serves as the Chief Executive Officer of CarParts.com, Inc. Under his leadership, the company has focused on enhancing its eCommerce platform, optimizing supply chain operations, and expanding product offerings to better serve customers.
Unique Advantage: CarParts.com, Inc. leverages a direct-to-consumer model with a robust eCommerce platform and strategically located distribution centers, enabling efficient delivery and competitive pricing. The company's focus on technology and customer experience sets it apart from traditional brick-and-mortar retailers.
Tariff Impact: As of May 2, 2025, the United States has imposed a 25% tariff on imported automobiles and auto parts from countries including Canada, Mexico, Japan, Germany, and South Korea. CarParts.com, Inc. sources a significant portion of its inventory from these countries. The new tariffs will increase the cost of imported parts, leading to higher procurement expenses. This could result in reduced profit margins or necessitate price increases for consumers. Additionally, the tariffs may disrupt supply chains, causing delays and inventory shortages. To mitigate these impacts, the company may need to seek alternative suppliers or negotiate better terms with existing ones. Overall, the tariffs are expected to have a negative impact on CarParts.com, Inc.'s operations and financial performance.
Competitors: Major competitors in the Vehicle Services & Parts Retailers sector include AutoZone, Inc. (AZO), O'Reilly Automotive, Inc. (ORLY), and Advance Auto Parts, Inc. (AAP). These companies have established market positions and extensive retail networks, posing significant competition to CarParts.com, Inc.
Description: Driven Brands Holdings Inc. is the largest automotive services company in North America, offering a diverse range of services including paint, collision, glass, vehicle repair, oil change, maintenance, and car wash. With over 5,000 locations across 13 countries, the company services approximately 70 million vehicles annually.
Website: https://www.drivenbrands.com/
| Name | Description | % of Revenue | Competitors |
|---|---|---|---|
| Take 5 Oil Change | Provides quick, convenient oil change services without the need for an appointment. | Approximately 47% | Jiffy Lube (similar scale), Valvoline Instant Oil Change (similar scale) |
| Meineke Car Care Centers | Offers comprehensive automotive repair and maintenance services, including brakes, exhaust, and tires. | Approximately 27% | Midas (similar scale), Pep Boys (similar scale) |
| Maaco Collision Repair & Auto Painting | Specializes in auto painting and collision repair services for vehicles of all types. | Approximately 18% | Service King (similar scale), Caliber Collision (similar scale) |
| CARSTAR | Provides high-quality collision repair services with a focus on customer satisfaction. | Approximately 8% | Gerber Collision & Glass (similar scale), ABRA Auto Body & Glass (similar scale) |
Past 5 Years:
Next 5 Years (Projected):
About Management: As of February 2025, Jonathan Fitzpatrick serves as the President and Chief Executive Officer of Driven Brands Holdings Inc. Under his leadership, the company has focused on strategic growth initiatives, including the expansion of the Take 5 Oil Change brand and the divestiture of the U.S. car wash business to streamline operations. (investors.drivenbrands.com)
Unique Advantage: Driven Brands' competitive advantage lies in its diversified portfolio of well-established automotive service brands, allowing it to cater to a wide range of customer needs. This diversification enables the company to cross-promote services, enhance customer loyalty, and mitigate risks associated with market fluctuations in any single service area.
Tariff Impact: The recent 25% tariffs imposed on imported vehicles and auto parts from countries like Canada and Mexico are unlikely to have a significant direct impact on Driven Brands Holdings Inc. As a provider of automotive services and parts retailing, the company primarily sources products domestically or from suppliers not affected by these tariffs. However, there could be indirect effects, such as increased costs for certain imported parts, which may lead to higher prices for consumers. This could result in customers delaying non-essential maintenance or repairs, potentially affecting service demand. Nonetheless, the essential nature of many of Driven Brands' services, such as oil changes and collision repairs, suggests that the overall impact on the company's operations will be minimal.
Competitors: Major competitors in the vehicle services and parts retailing sector include AutoZone, Inc., O'Reilly Automotive, Inc., and Advance Auto Parts, Inc. These companies hold significant market positions and offer overlapping services, making the industry highly competitive.
Description: Vroom, Inc. is an American company specializing in automotive finance and AI-powered analytics for automotive retail. Founded in 2013, Vroom initially operated as an e-commerce platform for buying and selling used cars but ceased its e-commerce operations in January 2024 to focus on its subsidiaries, United Auto Credit Corporation (UACC) and CarStory.
Website: https://www.vroom.com
| Name | Description | % of Revenue | Competitors |
|---|---|---|---|
| United Auto Credit Corporation (UACC) | An automotive finance company providing financing solutions for vehicle purchases. | Data not publicly disclosed | Santander Consumer USA, Ally Financial |
| CarStory | A provider of AI-powered analytics and digital services for automotive retail. | Data not publicly disclosed | Cox Automotive, Edmunds |
Past 5 Years:
Next 5 Years (Projected):
About Management: As of May 2025, Vroom's CEO is Thomas Shortt, who succeeded Paul Hennessy. Shortt has a background in operations and logistics, bringing expertise to streamline Vroom's focus on automotive finance and analytics.
Unique Advantage: Vroom's competitive advantage lies in its integration of AI-driven analytics through CarStory, offering data-driven insights to automotive retailers, and its comprehensive financing solutions via UACC, providing a seamless experience for both dealers and consumers.
Tariff Impact: As of May 2025, the United States has imposed a 25% tariff on imported vehicles and auto parts from countries including Canada, Mexico, Japan, Germany, and South Korea. (en.wikipedia.org) Vroom's subsidiaries, UACC and CarStory, primarily operate within the U.S. market, focusing on automotive finance and analytics services. Therefore, these tariffs are unlikely to have a direct impact on Vroom's operations. However, the broader automotive market may experience increased vehicle prices due to the tariffs, potentially affecting consumer purchasing behavior. This could indirectly influence the demand for financing services provided by UACC and the analytics services offered by CarStory. Vroom may need to adapt its strategies to address these market changes and support its clients in navigating the evolving landscape.
Competitors: In the automotive finance sector, UACC competes with companies like Santander Consumer USA and Ally Financial. CarStory faces competition from automotive analytics providers such as Cox Automotive and Edmunds.
Tariff-driven cost inflation
Retailers like AutoZone and O’Reilly source brake pads, filters and electrical modules from Canada, Mexico and South Korea, all now facing up to a 25% U.S. tariff (whitehouse.gov). This erodes gross margins as higher import costs are only partially passed on to DIY customers.
Supply chain volatility amplifies inventory risk, forcing excess safety stock or risking stock-outs.
EV adoption reducing ICE parts demand
As EVs grow to over 10% of light-vehicle sales in the U.S. (EV Volumes, 2024), traditional aftermarket staples—spark plugs, oil filters and exhaust parts—face secular decline. O’Reilly reported slower growth in engine-service part categories for Q1 2025 (ORLY Q1’25).
This forces retailers to invest in new EV-specific tooling, training and inventory, raising operating costs.
Supply chain disruptions and lead-time volatility Global chip shortages and port congestion lengthen lead times for ADAS sensors and electronic control units—key products for late-model vehicles. AutoZone warned of 20–30% longer replenishment cycles in 2024, degrading on-shelf availability (AZO 2024 Annual Report). Longer lead times inflate working capital and frustrate both DIY and professional installer customers.
Labor shortages and wage pressure
Skilled-mechanic vacancies are at a record high, with U.S. Bureau of Labor Statistics projecting 7% job growth but limited supply of trained technicians through 2030 (BLS Automotive Mechanics).
Retail-based service bays face higher wages (+4.5% YoY), downtime from unfilled shifts and slower throughput, capping revenue per bay.
Online competition compressing pricing
E-commerce giants like Amazon and specialty rivals (Advance Auto Parts) offer free shipping on consumables, undercutting brick-and-mortar pricing. Amazon’s automotive parts segment grew 25% in 2024 (Amazon Q4’24).
This forces traditional retailers to match margins online or invest heavily in digital platforms, squeezing profitability.
Aging vehicle parc driving aftermarket demand
The average age of U.S. vehicles reached 12.2 years in 2024 (IHS Markit), boosting demand for replacement parts and maintenance. AutoZone’s same-store sales rose 6.2% in FY 2024, reflecting this trend.
Older cars require more frequent service, underpinning a resilient revenue base.
Recurring-revenue from maintenance services
Retailers benefit from stable, high-margin service solutions: O’Reilly reported a 7% increase in professional installation ticket size in Q1 2025 (ORLY Q1’25).
Consistent service-bay utilization cushions overall performance against cyclical new-car sales.
Digitalization and omnichannel growth
AutoZone’s mobile app now accounts for 18% of total orders, offering curbside pickup and same-day delivery (AZO Q1’25).
This improves customer convenience, drives incremental sales and boosts gross margins through higher attachment rates.
DIY-repair trend post-pandemic
Consumer surveys show 32% of car owners undertake basic repairs themselves, up from 25% in 2019 (Automotive Aftermarket Suppliers Association, 2024).
DIY customers purchase parts and tools more frequently, increasing transaction volume and store traffic for retailers.
Data-driven inventory optimization
Advanced forecasting tools (RAIN RFID at O’Reilly) reduce stock-outs from 12% to under 5% and cut excess inventory by 8% (ORLY Technology Update, 2024).
Better in-stock positions lift sales and lower working capital requirements.
Expected revenue growth of 5% over the next year
With the new 25% tariff on imported auto parts source, retailers focusing on domestically sourced parts gain a cost advantage, boosting sales and margins.
Projected revenue increase of 4%
As consumers shift from higher-priced imported branded parts to lower-cost in-house offerings—a response to the 25% tariff on imports source—private-label specialists see higher demand.
Revenue growth of 3%
Large chains can leverage scale to negotiate better domestic supply rates and acquire smaller rivals struggling with increased import costs, expanding market share (IBISWorld)source
Revenue decline of -6%
Retailers specializing in Japanese and German OEM parts face a direct 25% tariff under Section 232 source, leading to higher consumer prices and volume reductions.
Revenue decline of -5%
Parts imported from Canada and Mexico now incur a 25% tariff source, squeezing margins and forcing price hikes that depress sales.
Revenue decrease of -4%
Small repair shops lack scale to absorb or negotiate tariff pass-through on parts costs source, resulting in reduced service sales as consumers delay non-essential repairs.
Consolidators & Multi-Location Chains such as AutoZone (AZO) and O’Reilly Automotive (ORLY) are poised to benefit the most, leveraging scale to secure domestic parts at lower costs and capture market share from smaller rivals under the new 25% import tariff (whitehouse.gov).
Private-Label Parts Retailers like Advance Auto Parts (AAP) are expected to see a 4% revenue boost as consumers trade down from imported branded parts to lower-cost in-house offerings (Reuters).
Regional Independent Retailers that focus on U.S.-made brake pads and filters should realize 5% growth as tariff-induced cost inflation shifts demand away from import-heavy competitors (IBISWorld).
Higher tariffs on new vehicles extend the average U.S. vehicle age beyond 12.2 years, driving incremental aftermarket part sales for all major chains (IHS Markit).
Recurring-revenue service bays at chains like AutoZone’s and O’Reilly’s pro-install programs will continue to expand ticket sizes by 7%, offsetting some margin pressure (ORLY Q1’25).
Robust omnichannel capabilities—18% of AutoZone’s orders via mobile app—support upsell of higher-margin parts, further cushioning the tariff impact (AZO Q1’25).
Specialty Import Parts Retailers such as CarParts.com (PRTS) face a -6% revenue hit as the 25% tariff on Japanese and German OEM parts (METI) drives up consumer prices and reduces order volume.
Cross-Border Suppliers relying on Canadian and Mexican imports see -5% declines due to new duties on parts from Canada and Mexico, squeezing margins and forcing price hikes (english.elpais.com).
Independent Family-Owned Repair Shops, lacking scale to absorb or negotiate tariff pass-through, will likely record a -4% drop in service revenue as consumers defer non-critical repairs (IBISWorld).
Supply chain volatility and 20–30% longer lead times for ADAS sensors further penalize smaller retailers unable to buffer stock (AZO 2024 Annual Report).
High wage inflation (+4.5% YoY) for service technicians also compresses profitability for shop-based service providers (BLS).
Online undercutting by Amazon (automotive parts up 25% in 2024) further pressures niche and local players (Amazon Q4’24).
The Vehicle Services & Parts Retailers subsector remains resilient on the back of an aging U.S. vehicle parc and steady DIY trends, with average car age at 12.2 years driving consistent demand (IHS Markit).
Retailers that invest in advanced inventory analytics and omnichannel fulfillment can mitigate headwinds from tariffs, supply chain disruptions, EV adoption shifts, and labor shortages.
Digitalization continues to be a key tailwind—curbside pickup and same-day delivery enhance customer loyalty and attachment rates.
EV penetration (over 10% of U.S. sales) requires retailers to expand parts assortments for high-voltage components, representing both a cost and opportunity.
Professional service-bay utilization and recurring-revenue maintenance services provide stable cash flows to offset cyclical new-car market fluctuations.
In this environment, investors should favor large, well-capitalized chains and private-label specialists with strong digital capabilities and domestic sourcing strategies.
Retailers providing aftermarket parts, maintenance, and repair services.
Description: AutoZone, Inc. is the largest retailer and distributor of automotive replacement parts and accessories in the United States. Founded in 1979, the company operates over 7,140 stores across the U.S., Mexico, Puerto Rico, Brazil, and the U.S. Virgin Islands, offering a wide range of products for cars, SUVs, vans, and light trucks.
Website: https://www.autozone.com
| Name | Description | % of Revenue | Competitors |
|---|---|---|---|
| Automotive Hard Parts | New and remanufactured parts such as engines, brakes, and transmissions. | Approximately 60% | O'Reilly Automotive, Inc. (ORLY), Advance Auto Parts, Inc. (AAP) |
| Maintenance Items | Products like motor oil, filters, and batteries. | Approximately 25% | O'Reilly Automotive, Inc. (ORLY), Advance Auto Parts, Inc. (AAP) |
| Accessories and Non-Automotive Products | Items including car care products, tools, and non-automotive merchandise. | Approximately 15% | O'Reilly Automotive, Inc. (ORLY), Advance Auto Parts, Inc. (AAP) |
Past 5 Years:
Next 5 Years (Projected):
About Management: As of 2025, AutoZone's executive team is led by CEO and President Philip B. Daniele III, who has been with the company since 1969. The team includes experienced leaders overseeing various departments, contributing to the company's strategic growth and operational efficiency.
Unique Advantage: AutoZone's extensive store network and robust supply chain enable it to provide a wide range of products with prompt availability. Its focus on customer satisfaction and a strong commercial sales program further distinguish it from competitors.
Tariff Impact: The recent 25% tariffs on imported vehicles and auto parts are expected to increase the cost of goods sold for AutoZone, as many of its products are sourced internationally. To mitigate this, AutoZone plans to pass these additional costs onto consumers through price adjustments. While this strategy aims to preserve profit margins, it may lead to reduced consumer demand, particularly in the price-sensitive DIY segment. However, higher tariffs on new vehicles could encourage consumers to maintain and repair their existing vehicles longer, potentially increasing demand for aftermarket parts and services. Overall, the tariffs present both challenges and opportunities for AutoZone, requiring strategic pricing and inventory management to navigate the evolving market dynamics.
Competitors: Major competitors include O'Reilly Automotive, Inc. (ORLY) and Advance Auto Parts, Inc. (AAP), both holding significant market shares in the automotive parts retail industry.
Description: O'Reilly Automotive, Inc., operating as O'Reilly Auto Parts, is a leading retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, Puerto Rico, and Mexico. Founded in 1957, the company serves both professional service providers and do-it-yourself customers, offering a comprehensive range of products for domestic and imported vehicles.
Website: https://www.oreillyauto.com
| Name | Description | % of Revenue | Competitors |
|---|---|---|---|
| Automotive Hard Parts | Includes new and remanufactured parts such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, and water pumps. | Approximately 60% | AutoZone, Inc. (AZO), Advance Auto Parts, Inc. (AAP) |
| Maintenance Items | Comprises antifreeze, appearance products, engine additives, filters, fluids, lighting products, oil, and wiper blades. | Approximately 25% | AutoZone, Inc. (AZO), Advance Auto Parts, Inc. (AAP) |
| Accessories | Includes floor mats, seat covers, truck accessories, and other automotive-related accessories. | Approximately 10% | AutoZone, Inc. (AZO), Advance Auto Parts, Inc. (AAP) |
| Tools and Equipment | Offers automotive tools and professional service provider equipment. | Approximately 5% | AutoZone, Inc. (AZO), Advance Auto Parts, Inc. (AAP) |
Past 5 Years:
Next 5 Years (Projected):
About Management: As of 2025, Brad Beckham serves as the Chief Executive Officer of O'Reilly Automotive, Inc. Under his leadership, the company has continued its expansion and maintained a strong market position in the automotive aftermarket industry.
Unique Advantage: O'Reilly's competitive advantage lies in its dual-market strategy, effectively serving both professional service providers and do-it-yourself customers. This approach, combined with a vast product selection and a commitment to exceptional customer service, has enabled the company to achieve consistent growth and market share gains.
Tariff Impact: The recent 25% tariffs imposed on imported vehicles and auto parts from countries like Canada, Mexico, Japan, Germany, and South Korea are unlikely to have a significant direct impact on O'Reilly Automotive, Inc. This is because the company primarily sources its products domestically or from countries not affected by these tariffs. Additionally, O'Reilly's focus on aftermarket parts, which are often produced locally or sourced from tariff-exempt regions, further mitigates potential adverse effects. Therefore, the new tariffs are not expected to materially affect O'Reilly's operations or financial performance.
Competitors: O'Reilly's primary competitors in the Vehicle Services & Parts Retailers sector include AutoZone, Inc. (AZO) and Advance Auto Parts, Inc. (AAP). Both companies operate extensive networks of stores across the United States and offer similar product lines, competing directly with O'Reilly in both the professional service provider and do-it-yourself customer segments.
Description: Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider serving both professional installers and do-it-yourself customers. Headquartered in Raleigh, North Carolina, the company operates over 4,700 stores across the United States, Canada, Puerto Rico, and the U.S. Virgin Islands. It also supports more than 1,100 independently owned Carquest branded stores in these regions, as well as in Mexico and various Caribbean islands. The company offers a wide range of automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported vehicles.
Website: https://www.advanceautoparts.com
| Name | Description | % of Revenue | Competitors |
|---|---|---|---|
| Replacement Parts | Includes batteries, brakes, engine parts, and other essential components for vehicle maintenance and repair. | Approximately 60% | AutoZone, Inc., O'Reilly Automotive, Inc. |
| Accessories | Offers interior and exterior accessories such as floor mats, seat covers, and lighting products. | Approximately 20% | AutoZone, Inc., O'Reilly Automotive, Inc. |
| Maintenance Items | Provides products like motor oil, filters, and wiper blades for routine vehicle upkeep. | Approximately 15% | AutoZone, Inc., O'Reilly Automotive, Inc. |
| Services | Includes battery and wiper installation, engine light scanning, and electrical system testing. | Approximately 5% | AutoZone, Inc., O'Reilly Automotive, Inc. |
Past 5 Years:
Next 5 Years (Projected):
About Management: Shane O'Kelly serves as the President and Chief Executive Officer of Advance Auto Parts, Inc., having joined the company in September 2023. Prior to this role, he was the CEO of HD Supply, a subsidiary of The Home Depot, Inc. O'Kelly holds a bachelor's degree from the United States Military Academy at West Point and an MBA from Harvard Business School. (ir.advanceautoparts.com)
Unique Advantage: Advance Auto Parts differentiates itself through a comprehensive product selection, a vast store network, and a strong focus on customer service, catering to both professional installers and DIY customers. Its strategic partnerships and extensive distribution network enhance its ability to meet diverse customer needs efficiently.
Tariff Impact: The recent 25% tariffs on imported vehicles and auto parts are expected to have a mixed impact on Advance Auto Parts. On one hand, higher prices for new vehicles may lead consumers to maintain and repair their existing vehicles longer, potentially increasing demand for aftermarket parts and services. This trend could benefit retailers like Advance Auto Parts, as consumers invest more in vehicle upkeep. However, the tariffs may also raise the cost of imported auto parts, affecting the company's supply chain and potentially leading to higher prices for consumers. The net effect will depend on the company's ability to manage increased costs and capitalize on the potential rise in demand for maintenance and repair services. (axios.com)
Competitors: Major competitors in the vehicle services and parts retail sector include AutoZone, Inc. and O'Reilly Automotive, Inc. Both companies have extensive store networks and strong market positions, offering similar products and services to Advance Auto Parts.
Description: CarParts.com, Inc. is a leading eCommerce provider of automotive parts and accessories, offering a wide selection of new, quality auto parts for car repair, maintenance, and collision, as well as accessories, all at competitive prices. The company operates through its flagship website and mobile app, serving individual customers across the United States.
Website: https://www.carparts.com
| Name | Description | % of Revenue | Competitors |
|---|---|---|---|
| Replacement Parts | Exterior parts, mirror products, engine and chassis components, and other mechanical and electrical parts. | Approximately 70% | AutoZone, Inc. (AZO), O'Reilly Automotive, Inc. (ORLY), Advance Auto Parts, Inc. (AAP) |
| Performance Parts and Accessories | Aftermarket parts designed to enhance vehicle performance and aesthetics. | Approximately 30% | AutoZone, Inc. (AZO), O'Reilly Automotive, Inc. (ORLY), Advance Auto Parts, Inc. (AAP) |
Past 5 Years:
Next 5 Years (Projected):
About Management: David Meniane serves as the Chief Executive Officer of CarParts.com, Inc. Under his leadership, the company has focused on enhancing its eCommerce platform, optimizing supply chain operations, and expanding product offerings to better serve customers.
Unique Advantage: CarParts.com, Inc. leverages a direct-to-consumer model with a robust eCommerce platform and strategically located distribution centers, enabling efficient delivery and competitive pricing. The company's focus on technology and customer experience sets it apart from traditional brick-and-mortar retailers.
Tariff Impact: As of May 2, 2025, the United States has imposed a 25% tariff on imported automobiles and auto parts from countries including Canada, Mexico, Japan, Germany, and South Korea. CarParts.com, Inc. sources a significant portion of its inventory from these countries. The new tariffs will increase the cost of imported parts, leading to higher procurement expenses. This could result in reduced profit margins or necessitate price increases for consumers. Additionally, the tariffs may disrupt supply chains, causing delays and inventory shortages. To mitigate these impacts, the company may need to seek alternative suppliers or negotiate better terms with existing ones. Overall, the tariffs are expected to have a negative impact on CarParts.com, Inc.'s operations and financial performance.
Competitors: Major competitors in the Vehicle Services & Parts Retailers sector include AutoZone, Inc. (AZO), O'Reilly Automotive, Inc. (ORLY), and Advance Auto Parts, Inc. (AAP). These companies have established market positions and extensive retail networks, posing significant competition to CarParts.com, Inc.
Description: Driven Brands Holdings Inc. is the largest automotive services company in North America, offering a diverse range of services including paint, collision, glass, vehicle repair, oil change, maintenance, and car wash. With over 5,000 locations across 13 countries, the company services approximately 70 million vehicles annually.
Website: https://www.drivenbrands.com/
| Name | Description | % of Revenue | Competitors |
|---|---|---|---|
| Take 5 Oil Change | Provides quick, convenient oil change services without the need for an appointment. | Approximately 47% | Jiffy Lube (similar scale), Valvoline Instant Oil Change (similar scale) |
| Meineke Car Care Centers | Offers comprehensive automotive repair and maintenance services, including brakes, exhaust, and tires. | Approximately 27% | Midas (similar scale), Pep Boys (similar scale) |
| Maaco Collision Repair & Auto Painting | Specializes in auto painting and collision repair services for vehicles of all types. | Approximately 18% | Service King (similar scale), Caliber Collision (similar scale) |
| CARSTAR | Provides high-quality collision repair services with a focus on customer satisfaction. | Approximately 8% | Gerber Collision & Glass (similar scale), ABRA Auto Body & Glass (similar scale) |
Past 5 Years:
Next 5 Years (Projected):
About Management: As of February 2025, Jonathan Fitzpatrick serves as the President and Chief Executive Officer of Driven Brands Holdings Inc. Under his leadership, the company has focused on strategic growth initiatives, including the expansion of the Take 5 Oil Change brand and the divestiture of the U.S. car wash business to streamline operations. (investors.drivenbrands.com)
Unique Advantage: Driven Brands' competitive advantage lies in its diversified portfolio of well-established automotive service brands, allowing it to cater to a wide range of customer needs. This diversification enables the company to cross-promote services, enhance customer loyalty, and mitigate risks associated with market fluctuations in any single service area.
Tariff Impact: The recent 25% tariffs imposed on imported vehicles and auto parts from countries like Canada and Mexico are unlikely to have a significant direct impact on Driven Brands Holdings Inc. As a provider of automotive services and parts retailing, the company primarily sources products domestically or from suppliers not affected by these tariffs. However, there could be indirect effects, such as increased costs for certain imported parts, which may lead to higher prices for consumers. This could result in customers delaying non-essential maintenance or repairs, potentially affecting service demand. Nonetheless, the essential nature of many of Driven Brands' services, such as oil changes and collision repairs, suggests that the overall impact on the company's operations will be minimal.
Competitors: Major competitors in the vehicle services and parts retailing sector include AutoZone, Inc., O'Reilly Automotive, Inc., and Advance Auto Parts, Inc. These companies hold significant market positions and offer overlapping services, making the industry highly competitive.
Description: Vroom, Inc. is an American company specializing in automotive finance and AI-powered analytics for automotive retail. Founded in 2013, Vroom initially operated as an e-commerce platform for buying and selling used cars but ceased its e-commerce operations in January 2024 to focus on its subsidiaries, United Auto Credit Corporation (UACC) and CarStory.
Website: https://www.vroom.com
| Name | Description | % of Revenue | Competitors |
|---|---|---|---|
| United Auto Credit Corporation (UACC) | An automotive finance company providing financing solutions for vehicle purchases. | Data not publicly disclosed | Santander Consumer USA, Ally Financial |
| CarStory | A provider of AI-powered analytics and digital services for automotive retail. | Data not publicly disclosed | Cox Automotive, Edmunds |
Past 5 Years:
Next 5 Years (Projected):
About Management: As of May 2025, Vroom's CEO is Thomas Shortt, who succeeded Paul Hennessy. Shortt has a background in operations and logistics, bringing expertise to streamline Vroom's focus on automotive finance and analytics.
Unique Advantage: Vroom's competitive advantage lies in its integration of AI-driven analytics through CarStory, offering data-driven insights to automotive retailers, and its comprehensive financing solutions via UACC, providing a seamless experience for both dealers and consumers.
Tariff Impact: As of May 2025, the United States has imposed a 25% tariff on imported vehicles and auto parts from countries including Canada, Mexico, Japan, Germany, and South Korea. (en.wikipedia.org) Vroom's subsidiaries, UACC and CarStory, primarily operate within the U.S. market, focusing on automotive finance and analytics services. Therefore, these tariffs are unlikely to have a direct impact on Vroom's operations. However, the broader automotive market may experience increased vehicle prices due to the tariffs, potentially affecting consumer purchasing behavior. This could indirectly influence the demand for financing services provided by UACC and the analytics services offered by CarStory. Vroom may need to adapt its strategies to address these market changes and support its clients in navigating the evolving landscape.
Competitors: In the automotive finance sector, UACC competes with companies like Santander Consumer USA and Ally Financial. CarStory faces competition from automotive analytics providers such as Cox Automotive and Edmunds.
Tariff-driven cost inflation
Retailers like AutoZone and O’Reilly source brake pads, filters and electrical modules from Canada, Mexico and South Korea, all now facing up to a 25% U.S. tariff (whitehouse.gov). This erodes gross margins as higher import costs are only partially passed on to DIY customers.
Supply chain volatility amplifies inventory risk, forcing excess safety stock or risking stock-outs.
EV adoption reducing ICE parts demand
As EVs grow to over 10% of light-vehicle sales in the U.S. (EV Volumes, 2024), traditional aftermarket staples—spark plugs, oil filters and exhaust parts—face secular decline. O’Reilly reported slower growth in engine-service part categories for Q1 2025 (ORLY Q1’25).
This forces retailers to invest in new EV-specific tooling, training and inventory, raising operating costs.
Supply chain disruptions and lead-time volatility Global chip shortages and port congestion lengthen lead times for ADAS sensors and electronic control units—key products for late-model vehicles. AutoZone warned of 20–30% longer replenishment cycles in 2024, degrading on-shelf availability (AZO 2024 Annual Report). Longer lead times inflate working capital and frustrate both DIY and professional installer customers.
Labor shortages and wage pressure
Skilled-mechanic vacancies are at a record high, with U.S. Bureau of Labor Statistics projecting 7% job growth but limited supply of trained technicians through 2030 (BLS Automotive Mechanics).
Retail-based service bays face higher wages (+4.5% YoY), downtime from unfilled shifts and slower throughput, capping revenue per bay.
Online competition compressing pricing
E-commerce giants like Amazon and specialty rivals (Advance Auto Parts) offer free shipping on consumables, undercutting brick-and-mortar pricing. Amazon’s automotive parts segment grew 25% in 2024 (Amazon Q4’24).
This forces traditional retailers to match margins online or invest heavily in digital platforms, squeezing profitability.
Aging vehicle parc driving aftermarket demand
The average age of U.S. vehicles reached 12.2 years in 2024 (IHS Markit), boosting demand for replacement parts and maintenance. AutoZone’s same-store sales rose 6.2% in FY 2024, reflecting this trend.
Older cars require more frequent service, underpinning a resilient revenue base.
Recurring-revenue from maintenance services
Retailers benefit from stable, high-margin service solutions: O’Reilly reported a 7% increase in professional installation ticket size in Q1 2025 (ORLY Q1’25).
Consistent service-bay utilization cushions overall performance against cyclical new-car sales.
Digitalization and omnichannel growth
AutoZone’s mobile app now accounts for 18% of total orders, offering curbside pickup and same-day delivery (AZO Q1’25).
This improves customer convenience, drives incremental sales and boosts gross margins through higher attachment rates.
DIY-repair trend post-pandemic
Consumer surveys show 32% of car owners undertake basic repairs themselves, up from 25% in 2019 (Automotive Aftermarket Suppliers Association, 2024).
DIY customers purchase parts and tools more frequently, increasing transaction volume and store traffic for retailers.
Data-driven inventory optimization
Advanced forecasting tools (RAIN RFID at O’Reilly) reduce stock-outs from 12% to under 5% and cut excess inventory by 8% (ORLY Technology Update, 2024).
Better in-stock positions lift sales and lower working capital requirements.
Expected revenue growth of 5% over the next year
With the new 25% tariff on imported auto parts source, retailers focusing on domestically sourced parts gain a cost advantage, boosting sales and margins.
Projected revenue increase of 4%
As consumers shift from higher-priced imported branded parts to lower-cost in-house offerings—a response to the 25% tariff on imports source—private-label specialists see higher demand.
Revenue growth of 3%
Large chains can leverage scale to negotiate better domestic supply rates and acquire smaller rivals struggling with increased import costs, expanding market share (IBISWorld)source
Revenue decline of -6%
Retailers specializing in Japanese and German OEM parts face a direct 25% tariff under Section 232 source, leading to higher consumer prices and volume reductions.
Revenue decline of -5%
Parts imported from Canada and Mexico now incur a 25% tariff source, squeezing margins and forcing price hikes that depress sales.
Revenue decrease of -4%
Small repair shops lack scale to absorb or negotiate tariff pass-through on parts costs source, resulting in reduced service sales as consumers delay non-essential repairs.
Consolidators & Multi-Location Chains such as AutoZone (AZO) and O’Reilly Automotive (ORLY) are poised to benefit the most, leveraging scale to secure domestic parts at lower costs and capture market share from smaller rivals under the new 25% import tariff (whitehouse.gov).
Private-Label Parts Retailers like Advance Auto Parts (AAP) are expected to see a 4% revenue boost as consumers trade down from imported branded parts to lower-cost in-house offerings (Reuters).
Regional Independent Retailers that focus on U.S.-made brake pads and filters should realize 5% growth as tariff-induced cost inflation shifts demand away from import-heavy competitors (IBISWorld).
Higher tariffs on new vehicles extend the average U.S. vehicle age beyond 12.2 years, driving incremental aftermarket part sales for all major chains (IHS Markit).
Recurring-revenue service bays at chains like AutoZone’s and O’Reilly’s pro-install programs will continue to expand ticket sizes by 7%, offsetting some margin pressure (ORLY Q1’25).
Robust omnichannel capabilities—18% of AutoZone’s orders via mobile app—support upsell of higher-margin parts, further cushioning the tariff impact (AZO Q1’25).
Specialty Import Parts Retailers such as CarParts.com (PRTS) face a -6% revenue hit as the 25% tariff on Japanese and German OEM parts (METI) drives up consumer prices and reduces order volume.
Cross-Border Suppliers relying on Canadian and Mexican imports see -5% declines due to new duties on parts from Canada and Mexico, squeezing margins and forcing price hikes (english.elpais.com).
Independent Family-Owned Repair Shops, lacking scale to absorb or negotiate tariff pass-through, will likely record a -4% drop in service revenue as consumers defer non-critical repairs (IBISWorld).
Supply chain volatility and 20–30% longer lead times for ADAS sensors further penalize smaller retailers unable to buffer stock (AZO 2024 Annual Report).
High wage inflation (+4.5% YoY) for service technicians also compresses profitability for shop-based service providers (BLS).
Online undercutting by Amazon (automotive parts up 25% in 2024) further pressures niche and local players (Amazon Q4’24).
The Vehicle Services & Parts Retailers subsector remains resilient on the back of an aging U.S. vehicle parc and steady DIY trends, with average car age at 12.2 years driving consistent demand (IHS Markit).
Retailers that invest in advanced inventory analytics and omnichannel fulfillment can mitigate headwinds from tariffs, supply chain disruptions, EV adoption shifts, and labor shortages.
Digitalization continues to be a key tailwind—curbside pickup and same-day delivery enhance customer loyalty and attachment rates.
EV penetration (over 10% of U.S. sales) requires retailers to expand parts assortments for high-voltage components, representing both a cost and opportunity.
Professional service-bay utilization and recurring-revenue maintenance services provide stable cash flows to offset cyclical new-car market fluctuations.
In this environment, investors should favor large, well-capitalized chains and private-label specialists with strong digital capabilities and domestic sourcing strategies.